Bond Market Update

Bounce Sustained

• U.S. Treasuries have continued their bounce off opening lows with the belly maintaining its slight lead. Thanks to today's advance, which has been assisted by Fed Governor Waller's acknowledgement that up to four rate cuts could be made this year, the 2-yr yield is on course for its lowest settlement in five weeks while the 10-yr yield has slipped to a ten-day low. Elsewhere, equities trade little changed with the S&P 500 (+0.1%) hanging onto a slim gain while the Nasdaq (-0.2%) underperforms.
• Yield Check:
  • 2-yr: -3 bps to 4.23%
  • 3-yr: -4 bps to 4.30%
  • 5-yr: -5 bps to 4.40%
  • 10-yr: -5 bps to 4.61%
  • 30-yr: -3 bps to 4.85%